Describe the possible methods of growth for a public limited company (plc). - Scottish Highers Business Management - Question b - 2023

This method involves a firm combining with another at an earlier stage of production. By collaborating with suppliers, a plc can secure more control over the supply chain and potentially reduce costs. For example, a manufacturer may acquire a raw materials supplier to ensure a steady supply of essential components.

Here, a firm merges with another at a later stage of production. This could involve a manufacturer acquiring a retailer to enhance its distribution capability and gain direct access to customers. By doing so, the plc can improve its customer service and increase market competitiveness.

Conglomerate integration occurs when firms from different markets combine to diversify their business. For a plc, this might mean entering new industries, which can minimize risks associated with market fluctuations and broaden potential revenue sources.

A plc can pursue organic growth by increasing its market share through the expansion of existing operations. This could involve adding new staff, enhancing production capabilities, or innovating new products to attract new customers.

This involves launching new products in new markets. A public limited company can diversify to reduce dependence on any single market or product. This strategy helps in spreading risk and capitalizing on emerging opportunities.